China Stock Market May Extend Winning Streak

The China stock market has climbed higher in two straight sessions, accelerating more than 150 points or 5 percent along the way. The Shanghai Composite Index now rests just above the 3,215-point plateau and it’s looking at another strong lead for Friday’s trade.

The global forecast for the Asian markets is upbeat amidst upward momentum after brutal selling earlier in the week. The European markets were mixed and the U.S. bourses were up and the Asian markets figure to split the difference.

The SCI finished sharply higher on Thursday following gains from the financial shares, property stocks and resource companies.

For the day, the index jumped 44.33 points or 1.40 percent to finish at 3,215.04 after trading between 3,202.93 and 3,260.17. The Shenzhen Composite Index soared 46.76 points or 2.24 percent to end at 2,133.01.

Among the actives, Industrial and Commercial Bank of China shed 0.66 percent, while Bank of China fell 0.33 percent, China Construction Bank lost 0.34 percent, China Merchants Bank soared 4.53 percent, Bank of Communications skidded 1.05 percent, China Life Insurance rallied 2.68 percent, Jiangxi Copper strengthened 1.66 percent, Aluminum Corp of China (Chalco) spiked 2.66 percent, Yankuang Energy jumped 1.78 percent, PetroChina advanced 0.98 percent, China Petroleum and Chemical (Sinopec) rose 0.49 percent, Huaneng Power retreated 1.25 percent, China Shenhua Energy tumbled 1.73 percent, Gemdale accelerated 1.87 percent, Poly Developments improved 3.00 percent, China Vanke skyrocketed 7.54 percent and China Fortune Land surged 3.69 percent.

The lead from Wall Street ends up solidly positive as the major averages shook off early directionless trade, accelerating in the afternoon to finish near daily highs.

The Dow surged 417.66 points or 1.23 percent to finish at 34,480.76, while the NASDAQ soared 178.23 points or 1.33 percent to end at 13,614.78 and the S&P 500 climbed 53.81 points or 1.23 percent to close at 4,411.67.

The strength that emerged on Wall Street reflects recent upward momentum, with the major averages extending the rally seen over the two previous sessions. The rebound has helped lift stocks well off their recent lows but also well shy of record highs.

The markets also continued to digest the Federal Reserve’s decision to raise interest rates for the first time since December 2018 on Wednesday. The Fed raised rates by 25 basis points to 0.25 to 0.5 percent and signaled several more rate hikes are likely over the coming months.

In economic news, the Labor Department said first-time claims for U.S. unemployment benefits fell more than expected last week. Also, the Commerce Department said housing starts rebounded than expected in February.

Crude oil prices climbed higher Thursday after the International Energy Agency warned of a possible supply loss from Russia in the coming weeks due to the sanctions imposed on the country. West Texas Intermediate Crude oil futures for April ended higher by $7.94 or 8.4 percent at $102.98 a barrel.